Toshiba to discuss exec appointments as CEO seen stepping down

FILE PHOTO: Reporters raise their hands during a Toshiba news conference at the company’s headquarters in Tokyo, Japan June 23, 2017. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) -Japanese conglomerate Toshiba Corp said its board would meet on Wednesday to discuss key executive appointments after widespread media reports that Chief Executive Nobuaki Kurumatani will step down.

Kurumatani is planning to resign as he faces controversy over a $20 billion buyout bid from his former employer, CVC Capital Partners, a source with knowledge of his decision told Reuters on Tuesday.

Kurumatani’s departure could upend CVC’s offer last week to take the Japanese company private. The takeover was seen as a means to shield him and other managers from pressure from activist shareholders seeking an investigation into whether management pushed investors to support their decisions.

“Reports about the replacement of our president and CEO are not something we announced,” Toshiba said in a statement. “The company will announce any decision that requires disclosure.”

Shares in Toshiba jumped 6.8% in early trade to 4,905 yen, approaching the 5,000 yen reportedly offered by CVC Capital.

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